M O R I TA R E P O RT 2 0 1 1

To Shareholders and Investors
Business Report for the 78th Term
From April 1, 2010 to March 31, 2011

Protecting Human Life and Mother Earth

Securities identification code:6455

We would like to express our heartfelt sympathy to everyone
affected by the Great East Japan Earthquake.
Morita group is engaged in businesses with a corporate slogan"Protecting Human Life and Mother Earth." We would like toprotect lives of the people in the disaster-affected area and theirenvironment for living with all our might by making every effort toassist them in their recovery from the disaster and reconstruction.

〜 Morita Group's Approaches for Assistance〜● Overhaul of Used Fire Trucks●

Since several tens of fire trucks
and other emergency vehicles offire stations in Aomori, Iwate,
Miyagi,andFukushima
Prefectures were unusable, Fire
Chiefs' Association of Japandecided to donate used vehicles
to them. Morita group approved
this approach and decided tocooperate with the association by overhauling the collected fire
trucks free of charge. The used fire trucks presented from all overJapan were once transported to Morita group's factory, and wechecked and quickly overhauled them, giving priority to this work.
The collected fire trucks were made by various manufacturers at
different times and in diversified conditions. We carefully
overhauled them one by
one and finally indicatedthe fire station names asin the case of such newvehicles. We are planningto deliver all of these fire
trucks approximately by
the end of June.

01

M O R I TA R E P O R T 2 0 1 1

● Provision of Vacuum Trucks●

and Garbage Trucks
Morita Econos Corporation accompanied the support vehicle teamsent to the disaster area by a trade association immediately after theearthquake and was engaged in the maintenance of environmentand sanitation vehicles. Since environment and sanitation vehicles
are insufficient in the earthquake-affected areas, the corporation
submitted a list of vehicles that can be donated to the tradeassociations and the Ministry of the Environment and prepared forthe provision of nine sanitation vehicles, 16 garbage trucks and two
vacuum trucks free of charge. These vehicles will be assigned one
by one to the organizations which made requests so as to support
recovery of the environment for living as soon as possible.

● Fund-raising with a Part of Fire Extinguisher●Collection Cost
Morita group is raising money for "Don't-give-up-Tohoku Fund" bycontributing a part of collection cost of old fire extinguishers
together with cooperating stores nationwide. We contribute one yen
per collected fire extinguisher to "Midori-no-Bokin" (Fundexclusively used for projects on recovery from the Great East Japan
Earthquake) by National Land Afforestation Promotion
Organization. For recovery and reconstruction in the earthquakeaffected areas, the fund will help maintenance of disaster-prevention
woods or other forests carried out by local governments or the like,tree-planting in residential zones and around schools, and donationof partitions and shelves for shelters.
We also continue "Eco-utan Fund" that we started in April 2010.
With this fund, we donate a part of the cost to collect old fire
extinguishers to NPO Asian Green Forest Network.

M O R I TA R E P O RT 2 0 1 1

02Morita Topics■■

Morita's Standard Design Fire Trucks(MFF Series)

It may be a common practice that every fire truck has its specialized
specifications. However, we have completed MFF series fire trucks,
which will innovate such common sense. We wanted to design a fire
truck that is easily identifiable by everyone as Morita's product.
With this concept, we researched and analyzed requests from
customers in the past and created a standard design truck that will
satisfy various requests for functions.
As the first product of MMF series, we made a fire truck equippedwith a water tank called a water tank vehicle. With its standardized
water tank shape, pump,body, and pipes, weachievedamoreexcellently designed fire
truck. It is characterized
by its stylish appearancewith LED taillights. We
shipped the first vehicle
in December 2010 andhave received orders for some units since then. We will develop
other types of vehicles and will provide products that will satisfy thecustomers' needs.

03

M O R I TA R E P O R T 2 0 1 1■■Capital Participation to a Fire Truck
Manufacturer in Shanghai, China

Morita took a stake in Shanghai Jindun Special Vehicle Equipment
Co., Ltd. (Shanghai Jindun), a fire truck manufacturer in Shanghai,
China, in March 2011. The demand for fire trucks in a year in China
is said to be three to four folds of that in Japan. As the economy
grows strongly, the demand is expected to further increase sharply.
By investing 50% of the capital of Shanghai Jindun, which is locatedin Shanghai with a remarkable economic growth, Morita will have abase of manufacture and sale in China. Morita aims at securely
understanding the needs of the growing market and enhancing thefoundation of business profits.

Summary of Shanghai Jindun Special Vehicle
Equipment Co., Ltd.
Location：City of Shanghai, China
Capital: 50million yuan (about 0.7 billion yen)
Number of employees: 150 persons
Business contents: Manufacturing and sales of fire
trucks.

M O R I TA R E P O RT 2 0 1 1

04

■
■

Package-type Automatic Fire Extinguisher"SPRINEX MINI" for Small Social Welfare Facilities

Currently, fires at social welfare facilities often threaten to be fatal,
and many victims have died of carbon monoxide poisoning causedby smoke. Considering such situations, Morita group has made ourconventional "SPRINEX" more compact to "SPRINEX MINI" forrooms in small-scale facilities below 275 m2, to which the cabinet
order for sprinkler installation is not applicable. When comparedwith sprinkler systems using water, it has excellent performanceand characteristics that are as follows:
・Quicker sensing of fire and fire extinguishing・Fire extinguishing performance is about four times that ofwater with suppressing recurrence of fire・Safe fire extinguishing agent
・Better anti-seismic performance and endurance and free fromconcern about freezing
・Easy installation and maintenance
It is our mission to provide optimum fire extinguishing equipment
suitable to lifestyles in the society.
■■Approaches to Stored Pressure TypeFire Extinguishers

In response to the burst accident
caused by an old fire extinguisher
in the year before last, Moritagroup declared to enhance theproduction facilities of stored
pressure fire extinguishers, which
are safer than old ones, and aremaking efforts in developing new products. For the collection of old
fire extinguishers, call the following toll-free number.

【Special toll-free dial】０１２０−９３６−４７９
Cover page
A drawing by Nanami Imai, a fourth grade student in Ichinomiya,
Aichi, selected for the best award in the 6th Future Fire Truck
Idea Contest for elementary school students throughout Japan.

05

M O R I TA R E P O R T 2 0 1 1

Message from Top Management
We would first like to extend our deep appreciation for your continued
support for Morita.
We are pleased to provide you with the Business Report on the 78th
term and report on the business overview.

Business Overview
In this consolidated fiscal year, the Japanese economy remained in
uncertainty with severe employment environment and sluggish
consumer spending, although earnings showed signs of recovery.
In addition, the Great East Japan Earthquake on March 11, 2011,
could possibly influence the Japanese future economy largely.
Under such situations, Morita Group has been striving tostrengthen its earning capacity by cost reduction and efficient
production in addition to promotion of active marketing activities.
As a result, though the Fire Fighting Vehicles Business and Fire
Protection Equipments & Systems Business were relatively good,
profits from Recycling Machines Business and Environmental
Conservation Vehicles Business have been low. The sales amountof this consolidated fiscal year was 59,749 million yen (3.2%
decrease) with a decrease of 1,988 million yen from the previous
year. On the other hand, the operating profit has increased by 115
million yen from the previous year and amounted to 4,339 million
yen (2.7% increase), and the ordinary profit has increased by 110
million yen from the previous year and marked a record high profitof 4,614 million yen (2.5% increase). The net income has increased
by 186 million yen and amounted to 2,230 million yen (9.1%
increase).

M O R I TA R E P O RT 2 0 1 1

06

Business Condition by Segment
蚪Fire Fighting Vehicles BusinessIn the fire fighting vehicles business, the number of vehicles soldlargely increased in the previous consolidated fiscal year thanks tothe supplementary budget of local governments, which are ourmajor customers. However, in this consolidated fiscal year,
although the remaining orders received in the previous year
contributed to the sales amount, the orders received were almost at
the same level as that in ordinary years. As a result, the sales
amount was 31,587 million yen (1.1% decrease) with a decrease of
345 million yen from the previous year. The segment profit was
3,740 million yen (4.0% decrease) with a decrease of 154 million yen
from the previous year.

蚪Fire Protection Equipments & Systems BusinessIn the fire protection equipments & systems business, orders andsales of sprinkler systems were dull in the equipment department.
The sales amount decreased by 831 million yen from the previous
year and resulted in 13,503 million yen (5.8% decrease). On theother hand, we concentrated our efforts to sales promotion of"SPRINEX," which is a package type automatic fire extinguisher toreplace sprinkler facilities, mainly for group homes. As a result, thesegment profit increased by 308 million yen from the previous year
and amounted to 649 million yen (90.6% increase).

蚪 Recycling Machines BusinessIn the recycling machines business, as we have received only a few
orders for "Guillotine Press" and other products, we concentrated
our efforts to components and maintenance services. However, thesales decreased by 102 million yen from the previous year andresulted in 3,337 million yen (3.0% decrease). The profit and loss forthe segment have been improved by 43 million yen from theprevious year and we had a loss of 155 million yen.

蚪Environmental Conservation Vehicles BusinessIn the environmental conservation vehicles business, the sales ofrefuse disposal cars and sanitation vehicles have been dull. The
sales decreased by 389 million yen from the previous year andresulted in 7,976 million yen (4.7% decrease). The profit of thesegment decreased by 92 million yen from the previous term andresulted in 197 million yen (31.9% decrease).
07

M O R I TA R E P O R T 2 0 1 1蚪Bicycles BusinessIn the bicycles business, the sales decreased by 319 million yen
from the previous year and resulted in 3,344 million yen (8.7%
decrease). As the profit and loss for the segment, we had a loss of
74 million yen (loss of 97 million yen in the previous consolidated
fiscal year) though we made efforts in reducing the sales andgeneral administration expense.

Issues We Need to Address
Our business environment is expected to get more challenging andchange more rapidly. To deal with such situations, Morita groupwill strive to establish a strong brand with loyal clientele byrevisiting our principles of "technological improvement" and"achievement of customer satisfaction." Following are the specificissues we need to address:
1) Increase the earning power of the existing businesses
2) Increase the earning of the overseas businesses
3) Improve the market share through the launch of high valueadded products
4) Human resource development
Morita Group will strive further to improve its corporate value
through a speedier management and strengthened earning power.
We would like to take this opportunity to ask our shareholders fortheir continued support and encouragement.

June 2011

Masahiro Nakajima
President

M O R I TA R E P O RT 2 0 1 1

08

FINANCIAL HIGHLIGHTS（Consolidated）●Net Sales●Ordinary Profit（Millions of yen）
61,73759,74960,00056,704（Millions of yen）
5,000

50,000 46,357

4,503

4,614

4,000

40,000
3,000

2,653

2,783

30,0002,000
20,0001,000

10,000002008.3 2009.3 2010.3 2011.3●Net Income

2008.3 2009.3 2010.3 2011.3●Return on Assets（ROA）（％）（Millions of yen）
2,500

7
2,230

6.4

2,044

2,000

6.1

6

1,500
1,066

5

1,119

1,000

4.4
4.1

4

500
0

3
2008.3 2009.3 2010.3 2011.3

2008.3 2009.3 2010.3 2011.3●Shareholders' Equity Ratio●Interest-Bearing Liabilities（％）
60（Millions of yen）
20,00014,74815,00050

12,568
46.5

44.9
42.4

40

18,31410,000

9,850

37.5

5,000

30

0
2008.3 2009.3 2010.3 2011.3

09
01

M O R I TA R E P O R T 2 0 1 1

2008.3 2009.3 2010.3 2011.3

Consolidated Summary● Consolidated Balance Sheets

Morita Holdings Corporation and Consolidated Subsidiaries
As of March 31, 2010 and 2011
Millions of yen

AssetsCurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets
Liabilities
Current liabilities
Long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Additional paid-in capital
Retained earnings
Treasury stock, at cost
Total shareholders' equity
Accumulated other comprehensive income
Unrealized gains (losses) on available-for-sale securities
Deferred gains (losses) on hedges
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests in consolidated subsidiaries
Total net assets
Total liabilities and net assets

2010

2011

¥ 36,269¥ 34,909

29,77830,167

433

1,046

6,576

5,640

¥ 73,058¥ 71,765¥ 25,495¥ 20,852

16,26017,48341,75638,335

4,746

4,746

3,743

3,743

25,142

26,627(1,023)(1,036)32,60834,080

150

(195)

(15)

(100)

(1,728)(1,428)

(50)

(121)

(1,644)(1,845)

338

1,194

31,30233,429¥ 73,058¥ 71,765

M O R I TA R E P O RT 2 0 1 1

1002

● Consolidated Statements of Income

Morita Holdings Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2010 and 2011
Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income
Other expenses
Income before income taxes
Income taxes
Current
Deferred

Minority interests in earnings of consolidated subsidiaries
Net income

2010

2011

¥ 61,737¥ 59,749

47,30045,30914,437

14,43910,213

10,100

4,223

4,339

697

1,092

927

1,340

3,993

4,090

2,299

1,829

(364)

(13)

1,935

1,815

13

44

¥ 2,044¥ 2,230Yen

Per share of common stock
Basic net income
Diluted net income
Cash dividends applicable to the year

2010

2011

¥ 47.01¥ 49.98

−

−

10.00

10.00

● Consolidated Statements of Cash Flows
Morita Holdings Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2010 and 2011
Millions of yen

2010

2011

Cash flows from operating activities¥ 764¥ 5,366

Cash flows from investing activities(950)(1,028)Cash flows from financing activities(4,037)(2,940)Net increase (decrease) in cash and cash equivalents(4,224)

1,397

Cash and cash equivalents at beginning of year

9,200

4,976

¥ 4,976¥ 6,373

Cash and cash equivalents at end of year

1101

M O R I TA R E P O R T 2 0 1 1

● Consolidated Statement of Changes in Net Assets(in millions of yen)

Morita Holdings Corporation and Consolidated Subsidiaries
For the Year Ended March 31, 2011
Shareholders' equity
Commonstock

Balance at March 31, 2010

4,746

Additional
paid-in capital

3,743

Total
Treasury stock, shareholders'at costequityRetainedearnings(1,023)25,14232,608Amount of change
Cash dividends

(446)

(446)

Net income

2,230

2,230

Acquisition of treasury stock
Disposal of treasury stock(0)

Reversal of reserve forland revaluation

(14)

(14)

2

1
(300)

(300)

Net changes other thanshareholders' equity
Total changes
Balance at March 31, 2011

−
−

(0)

1,484

(12)

1,471

4,746

3,743

26,627(1,036)34,080

Accumulated other comprehensive income
Minority
Unrealized Deferred Unrealized
Foreign interests in
Total
gains on
gains
gains
currency
net assets
available(losses)on translation consolidated(losses)subsidiaries
for-salerevaluation adjustmentsonhedgessecuritiesof land

Balance at March 31, 2010

150

(15)

(1,728)(50)

338

31,302

Amount of change
Cash dividends(446)

Net income

2,230

Acquisition of treasury stock(14)

Disposal of treasury stock1

Reversal of reserve forland revaluation
Net changes other thanshareholders' equity

(300)

(345)

(84)

300

(70)

856

655

Total changes

(345)

(84)

300

(70)

856

2,126

Balance at March 31, 2011

(195)

(100)

(1,428)

(121)

1,194

33,429M O R I TA R E P O RT 2 0 1 1

1202

Company Profile
Overview
Company name

MORITA HOLDINGS CORPORATION

Inauguration of business
Establishment
CapitalApril 23, 1907

July 23, 1932

¥4,746mil

Osaka Head Office

5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi Osaka

Tokyo Head Office

3-25-31 Nishishinbashi, Minato-ku, Tokyo

Type of BusinessControl/management of business activities
of group companies, and undertaking of
indirect management operations on acommission basis

Group Companies
MORITA CORPORATION
1-5 Techno Park, Sanda-shi, Hyogo, 669-1339, Japan
Development, manufacturing and sales of ladder trucks, fire
trucks and other fire trucks and specialty vehicles.
MORITA BOHSAI TECH CORPORATION
Shiba256 Square Building 8F, 2-5-6 Shiba, Minato-ku, Tokyo, 105-0014, Japan
Sales of fire protection equipments focused on fire extinguishers.
Design, construction and maintenance of fire protection facilities.
MORITA ENVIRONMENTAL TECH CORPORATION
1530 Konoda-cho, Funabashi-shi, Chiba, 274-0081, Japan
Design of waste recycling facilities and other waste disposal
facilities, and manufacturing and sales of large hydraulic equipment.
MORITA ECONOS CORPORATION
1-48 Jinmu-cho, Yao-shi, Osaka, 581-0067, Japan
Manufacturing and sales of environment preservation vehicles
such as sanitation vehicles and garbage trucks.
MORITA TECHNOS CORPORATION
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka, 544-0003, Japan
Aftercare service and maintenance of fire trucks, equipment and materials. Development,
manufacturing and sales of electronic applied machinery and information processing machinery.
MIYATA INDUSTRY CO.,LTD.
1-1-1 Shimomachiya, Chigasaki-shi, Kanagawa, 253-8588, Japan
Development, manufacturing and sales of fire extinguishers,
fire fighting equipment, and fire protection-related equipment.
MIYATA CYCLE CO.LTD.
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003, Japan.
Development and sales of bicycles.

13

M O R I TA R E P O R T 2 0 1 1

MORITA SOGO SERVICE CORPORATION
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka, 544-8585, Japan
ALUVO CORPORATION
1479-1 Kamikanzo, Iwata-shi, Shizuoka, 438-0115, Japan
MORITA U.G. CORPORATION
2-3-5 Kandasuda-cho, Chiyoda-ku, Tokyo, 101-0041, Japan
MORITA ENGINEERING CORPORATION
1-48 Jinmu-cho, Yao-shi, Osaka 581-0067, Japan
HOKKAIDO MORITA CORPORATION
13-2-17 Naebo-cho, Higashi-ku, Sapporo-shi, Hokkaido, 065-0043, JapanKAGOSHIMA MORITA PUMP CORPORATION
12-32, Matsubara-cho, Kagoshima-shi, Kagoshima, 892-0833, Japan
MORITA TOYO CORPORATION
1700-2 Konjinzuka, Sanagu-cho, Iga-shi, Mie, 518-0001, JapanSHANGHAI JINDUN SPECIAL VEHICLE EQUIPMENT CO., LTD.
No.1515, Lizheng Road, Shuyuan Town, Pudong New Area,
Shanghai, China, 201304
NANJING CHENGUANG MORITA ENVIRONMENT PROTECTIONSCIENCE & TECHNOLOGY CO., LTD
No. 188 Tianyuanzhong Road, Jiangning Economic & TechnicalDevelopment Zone, Nanjing, China, 211100
SICHUAN MORITA FIRE SAFETY APPLIANCES LIMITED COMPANY
No.8, Xinhua Avenue, Chengdu, Cross-Straits Technological,
Industry Park, Wenjiang District, China, 611130
MORITA HOLDRICH (HONG KONG) COMPANY LIMITED
FLAT/RM, 1909, 19/F, Hutchison HSE., 10 Harcourt RD., Central, Hong Kong
MORITA VIETNAM COMPANY LTD.
Minh Duc Commune, My Hao District, Hung Yen Province, Vietnam

Executives
President
Director
Director
Director
Director
Director
Full-Time Corporate Auditor
Full-time Corporate Auditor
Full-time Corporate Auditor
AuditorCorporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer

Masahiro Nakajima
Kouki Shirai
Kenichi Kitamura
Kazuhiro Tsuchiya
Yukihiro Maehata
Kazuｍi Kawaguchi
Eiji Asada
Atsushi Sasaki
Hisao Hayakawa
Kazuyoshi Matsumura
Toshihiko Iwamuro
Hiroko Urano
Naohisa Sakamoto
Shinichi Kanaoka
Shinya Murai
M O R I TA R E P O R T 2 0 1 1

14

Shareholder’s MemoIntroduction to the Share
April 1st to March 31st

Business Year

Annual General Meeting of Shareholders

June

Reference date

Annual General Meeting of Shareholders – March 31stYear-end Dividend – March 31st
Interim Dividend – September 30th
Other dates published in advance as necessary

Notification Method

Posted on company website
http://www.morita119.com/kohkoku/index.html

Administrator of the shareholders list
The Sumitomo Trust & Banking Co., Ltd.
4-5-33, Kitahama, Chuo-ku, Osaka-shi
Place of clerical office for the above
Stock Transfer Agency Department, The Sumitomo Trust & Banking Co., Ltd.
4-5-33, Kitahama, Chuo-ku, Osaka-shi（Postal Address）

Stock Transfer Agency Department, The Sumitomo Trust & Banking Co., Ltd.
1-10 Nikko-cho, Fuchu-shi, Tokyo 183-8701（Telephone Inquiries）+81-120-176-417（Internet Website URL）

http://www.sumitomotrust.co.jp/STA/retail/service/daiko/index.html
Tokyo Stock Exchange, Osaka Securities Exchange

Stock Listing[Special Account]

For shareholders who did not use JASDEC (Japan Securities Depository
Center, Inc.) before the share certificates were computerized, an account(special account) has been opened above Sumitomo Trust & banking Co.,
Ltd., the shareholder register administrator. For details regarding thespecial account, notification of address change, and so on, please inquirewith the above contact.

[Notification of address change and inquiries]
For shareholders who have an account at a securities firm, please contact
the firm where your account is established for notification of addresschange and so on. For shareholders who do not have an account at asecurities firm, please inquire with the above contact.

Osaka Head Office
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka 544-8585, Tel. +81-6-6756-0100
Tokyo Head Office
3-25-31 Nishishinbashi, Minato-ku, Tokyo 105-0003, Tel. +81-3-5777-5777

http://www.morita119.com
Printed using
environmentallyfriendly soy ink.